GSTN, Key Returns & Composition Scheme

5.1 GSTN — IT Backbone

GST Network (GSTN) is a Section 8 (not-for-profit) company incorporated in 2013, operational since July 2017.

Functions of GSTN:

1. GST registration — issue GSTIN (15-digit PAN-based unique number)
2. Return filing — GSTR-1, GSTR-3B, GSTR-9, etc.
3. Tax payment processing — integrate with banking system
4. E-way bill generation
5. Refund processing
6. Matching input invoices (supplier's GSTR-1 → auto-populate buyer's GSTR-2B)

GSTN shareholding (post-2019 amendment): Centre (50%), States collectively (50%) — original private stake eliminated; now fully government-owned.

5.2 Key GST Returns

Return	Who Files	What It Contains	Frequency
GSTR-1	All registered taxpayers	Details of outward supplies (sales invoices)	Monthly (turnover > ₹5cr) / Quarterly
GSTR-3B	All regular taxpayers	Summary of inward and outward supplies, ITC claimed, tax payable	Monthly
GSTR-2B	Auto-generated	ITC available based on supplier's GSTR-1 filings (not filed by taxpayer — system generated)	Monthly
GSTR-9	All registered	Annual return (summary of monthly returns)	Annual
GSTR-9C	Turnover > ₹5 crore	Reconciliation between audited P&L and GSTR-9	Annual
GSTR-10	Cancelled registrations	Final return on cancellation	Within 3 months of cancellation

5.3 Composition Scheme

For small businesses — reduces compliance burden:

Category	Rate	Threshold
Manufacturer / Trader	1% of turnover	≤ ₹1.5 crore turnover
Restaurant (not serving alcohol)	5% of turnover	≤ ₹1.5 crore turnover
Service providers	6% of turnover	≤ ₹50 lakh turnover
Special category states	Same rates	≤ ₹75 lakh (for NE + hilly states)

Restrictions: Cannot issue tax invoice, cannot collect GST from customers, cannot claim ITC, cannot make inter-state outward supply.

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